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U.S. Chamber of Commerce: Level playing field for all retailers

A broad collection of business and trade groups called on House Judiciary Chairman Bob Goodlatte to move forward on online sales tax collection this year by turning his principles into legislative language.

tax-headerThe letter from the Marketplace Fairness Coalition asks Goodlatte to take a set of principles he released last fall tax to write a bill. Goodlatte has expressed concerns with the Senate-passed Marketplace Fairness Act and said he wants to beef up protections against audits for small businesses and potentially remove a small-seller exemption.

The letter was signed by long-time supporters of the effort to give states the authority to mandate online and out-of-state retailers collect sales tax including Target and Wal-Mart.

The U.S. Chamber of Commerce also signed onto the coalition’s letter – marking one of the first times the trade group actively pushed for a federal solution.”

 
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Discussion
  • Facebook User

    Proponents of this bill say it will be easy. REALLY? Have they ever tried to integrate tax software into a customized shopping cart? LOL!! Like “OBAMACARE“ easy? Even if we take them at their word “only one state tax rate” and “perfect running software to calculate”, HOW DO PAYMENTS GET REMITTED to all 46 states? Do we write 46 monthly checks? Fill out 46 separate monthly sales tax returns?

    NO ONE CAN HONESTLY ANSWER THIS QUESTION BECAUSE THEY DID NOT STUDY THE APPLICATION OF THIS LEGISLATION BEFORE RUSHING IT THROUGH THE SENATE.

    Not all small merchants are order automated and to input additional information by hand is both time consuming and interferes with normal business operations. What about audit risk? Can the tax board in Tennessee come after a merchant in Florida? Is it moral to burden an out of state merchant to collect taxes on behalf of a state they don’t live or work or vote in? Why not ask China or Mexico to collect Tennessee taxes? Is this constitutional? Will surely be challenged in the courts, but why this legislation is truly harmful is that in such a weak recovery (check labor
    participation rate, wage growth, hours worked, etc.) you are burdening the very
    small businesses that are one of the only sources of growth in our economy.
    Hiring in this sector will freeze or decline and companies that are mobile and
    of large enough scale will simply move offshore. Our tax code is already
    written in a manner that encourages large companies to domicile offshore, this
    legislation encourages the medium and even portable smaller sized USA
    businesses to join them in order to compete with websites that won’t have to
    collect this tax in the Caribbean, Mexico, Canada, etc.

    The tax revenue collected will come right out of the pockets of the average American family and the extra $$$ our citizens will have to pay means LESS money in their pockets to spend locally.

    In terms of “Fairness”, there is zero entry barrier for any brick and mortar retailer to sell their products online.

    HOW ABOUT AN OPT OUT OPTION? We agree not to ship to states that want us to collect sales tax and then we are not forced to multiple file and take the audit risk? One million dollars ofrevenue does not make you a big business…….at a 5% profit (small margins are common online) you are making a whopping $50K of gross profit annually……this will ensnare and burden a TON of small businesses if passed
    in its current configuration.

  • Phil Bond

    As the Executive Director of the WE R HERE
    Coalition — comprised of more than 11,000 small, web-enabled retailers doing
    business in Virginia and across the country– I can assure you that the US
    Chamber does not represent these retailers, many of which stand to be hounded
    out of existence in a Marketplace Fairness Act regime. Certainly Amazon,
    Walmart, Home Depot and other mega corporations have more access at the Chamber
    than do small web-enabled retailers across the country. And not surprisingly, the
    Chamber is siding with those mega-companies against the interest of the
    innovative small companies selling via the web.

    – Phil Bond

 
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